The US Congress Drafting Bill Again Suppresses Libra, Which May Be Good News for BTC

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Regardless of Libra’s fate, Facebook and the US government are big winners. Although Libra has a short-term impact on the dollar, the dollar is more used for bulk commodity trading. Libra anchors bank deposits, government bonds, and a basket of currencies to measure the value of goods, while serving as a medium for small-value goods and services, and as a target to enter the category of public wealth storage. Even if Libra does not have the status of a global legal currency, it can fully operate as a digital currency in the field of goods and services like Bitcoin, and the value space created for it by a large user group must be much broader than any other digital currency. This draft is more like cake distribution. Libra will certainly represent a wider range of interests in the United States.

A draft discussion bill titled “Keep Big Tech Out of Finance Act” had surfaced on July 13 afternoon.

The bill aims to prevent tech colossuses from becoming financial institutions. It also seeks to prohibit these companies from “establishing, maintaining, or operating a digital asset that is intended to be widely used as a medium of exchange, unit of account, store of value,” as defined by the Board of Governors of the Fed.

According to the draft, any technology company with annual global revenue of more than $25 billion and predominately engaged in the business of offering online public marketplaces, exchanges, or platforms for connecting third parties would fall under the prohibition. These companies would be subject to a daily $1 million fine for violating either subsection of the bill.

A source familiar with the matter told that the discussion draft is being floated by the House Financial Services Committee staff. However, it doesn’t have an official lead yet.

Suppress Libra

The timing of the draft bill is very subtle, because a few days later the hearing of Libra will be held.

So, boldly guessing, this draft is aimed at Facebook’s Libra project, because the US Congressman has jointly issued a statement asking Facebook to suspend the project. The draft this time on one hand has put pressure on Facebook , on the other hand it has warned other technology giants.

Blockchain, cryptocurrencyand smart contracts pioneer Nick Szabo said,”The bigger the tech, the easier the target.”

Good News for BTC

Co-founder & Partner at Morgan Creek Digital Anthony Pompliano said,”This is the most bullish thing for Bitcoin I’ve heard in weeks! ”

Reuters: it would also likely be an uphill struggle

Such a sweeping proposal would likely spark opposition from Republican members of the house who are keen on innovation, and would likely struggle to gather enough votes to pass the lower chamber.

Even if it were to pass the full house, it would still have to pass the senate which would also likely be an uphill struggle.

Some netizens also said:

”Because of these under-conceived laws, the United States may become the least competitive jurisdiction in this area. Most companies will choose to set up outside the United States and may exclude US residents.”

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